Business / Companies
Gwanda mine continues to defy indigenisation laws
26 Dec 2014 at 20:33hrs | Views
Duration Gold, the company that took over operations at Vumba Chigwe Mine in Gwanda has continued to defy government on ceding 51% share ownership to locals in line with the indigenisation laws.
While it is unclear why Duration Gold has dug in on the indigenisation law depriving the Gwanda community of a stake in the mine, the political leadership in Gwanda has rolled its sleeves for a bruising confrontation with the mine owners.
The Minister of State for Matabeleland South province, Abednico Ncube said government will not tolerate defiance and will confront the mine owners with the view of forcing them to comply or to surrender the mine to the locals.
Ncube, who was invited to the mine by the workers representative body for a clarification of their stake at the mine, said government will force the company to comply using the existing laws.
The mining company which used to produce an average of 100kg of gold per month is alleged to be sabotaging government by destroying underground pillars, a development that could cause the mine to collapse.
Ncube said there is need for intervention by the ministry of mines officials to investigate allegations of unsafe mining operations fearing that this could cost people's lives should the mine collapse.
Other mining firms in Gwanda have complied with the indigenisation law and have invested in the building of science laboratories, classroom blocks, and clinics as well as buying a water drilling rig.
While it is unclear why Duration Gold has dug in on the indigenisation law depriving the Gwanda community of a stake in the mine, the political leadership in Gwanda has rolled its sleeves for a bruising confrontation with the mine owners.
The Minister of State for Matabeleland South province, Abednico Ncube said government will not tolerate defiance and will confront the mine owners with the view of forcing them to comply or to surrender the mine to the locals.
Ncube, who was invited to the mine by the workers representative body for a clarification of their stake at the mine, said government will force the company to comply using the existing laws.
The mining company which used to produce an average of 100kg of gold per month is alleged to be sabotaging government by destroying underground pillars, a development that could cause the mine to collapse.
Ncube said there is need for intervention by the ministry of mines officials to investigate allegations of unsafe mining operations fearing that this could cost people's lives should the mine collapse.
Other mining firms in Gwanda have complied with the indigenisation law and have invested in the building of science laboratories, classroom blocks, and clinics as well as buying a water drilling rig.
Source - zbc
